Pepper company acquired 90 percent of salt company's stock at underlying book value on january 1, 20x8. at that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of salt company. salt co. sold equipment to pepper co. for a $360,000 on december 31, 20x8. salt co. had originally purchased the equipment for $400,000 on january 1, 20x5, with a useful life of 10 years and no salvage value. at the time of the purchase, pepper co. estimated that the equipment still had the same remaining useful life. both companies use straight-line depreciation. pepper sold land costing $90,000 to salt company on june 28, 20x9, for $122,000. required: a. prepare pepper’s journal entries related to intercompany sale at december 31, 20x9. b. prepare the consolidation entries that related to intercompany sale of land at december 31, 20x9. c. prepare the consolidation entries that related to intercompany sale of equipment at december 31, 20x9.

answer; conceptual skills;

answervulnerability assessment;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.